The trade threats could reduce exports to the United States and dampen investment in Europe, dealing a blow to growth at a time when the continent is already facing a lackluster economy.

European Commission President Ursula von der Leyen said during the Munich security conference Friday the European Union will respond if the United States imposes reciprocal tariffs.

The Trump administration also highlighted a 2.5% tariff on ethanol imports that compares to an 18% tariff applied by Brazil. The White House said this resulted in the U.S. importing “over $200 million in ethanol from Brazil, while the U.S. exported only $52 million in ethanol to Brazil.”